Match the Characteristic of the Company with the Description of the Type

question 51

Short Answer

Match the characteristic of the company with the description of the type of company.
A.Partnership.
B.Publicly traded corporation.
C.Privately traded corporation.
_____ 1.Issues shares of stock that are traded on a stock exchange such as the TSX.
_____ 2.Owners are personally liable for the debts of the company.
_____ 3.Shares of stock must be purchased directly from current owners.
_____ 4.Can raise more financial capital by selling stock to the greatest number of investors.

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Definitions:

Common Stock Subscribed

An agreement by investors to purchase common stock from a company, indicating the investors' commitment to buy shares at a future date.

Subscriptions Receivable

Amounts owed by customers for subscription services that have been billed but not yet paid.

Stock Warrants

Certificates granting the holder the right to purchase shares of stock at a specified price before a set expiration date.

Option Price

The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.